You're almost correct, just misplaced a few quotes. Wrapping the whole thing in regular quotes will literally give you the string #demo + {this.state.id} - you need to indicate which are variables and which are string literals. Since anything inside {} is an inline JSX expression, you can do:
href={"#demo" + this.state.id}
This will use the string literal #demo and concatenate it to the value of this.state.id. This can then be applied to all strings. Consider this:
var text = "world";
And this:
{"Hello " + text + " Andrew"}
This will yield:
Hello world Andrew
You can also use ES6 string interpolation/template literals with ` (backticks) and ${expr} (interpolated expression), which is closer to what you seem to be trying to do:
href={`#demo${this.state.id}`}
This will basically substitute the value of this.state.id, concatenating it to #demo. It is equivalent to doing: "#demo" + this.state.id.